K2 Space, a fast-growing satellite manufacturer that builds large, high-power spacecraft for defense and commercial communications, has closed a $500 million Series D funding round at a $6.8 billion valuation — more than doubling its previous worth.

The round, led by ICONIQ and reported by Reuters, Bloomberg, and GeekWire on July 30, 2026, makes K2 Space one of the most valuable private space companies in the world. The Torrance, California-based startup recently established an engineering hub in Seattle.

K2 Space specializes in building large, low-cost satellites designed for data-heavy missions including high-bandwidth communications, Earth observation, and defense applications. The company's approach contrasts with the small-satellite trend that has dominated the space industry, betting instead that larger platforms with more power and payload capacity will be essential for the next generation of orbital infrastructure.

The funding comes amid a broader surge in space investment, driven by growing demand for satellite-based AI processing, persistent surveillance, and global communications networks. K2 Space's valuation jump from approximately $3 billion in its previous round reflects investor confidence in the large-satellite thesis.

The company has not disclosed specific contract values but has indicated it has a growing backlog of government and commercial orders.

Sources